The Hindu Business Line : Aircraft acquisition: AI board to meet in Mumbai on April 26

THE multi-billion-dollar 50 aircraft fleet acquisition plan of Air India, which has been in the making for some time now, could soon become a reality.

The airline board is scheduled to meet in Mumbai on April 26 and is expected to take a view on the airline's fleet acquisition plan. Official sources confirmed the meeting was scheduled for the coming Tuesday but refused to elaborate on the agenda.

The airline has already invited offers for acquiring 50 aircraft from the two major manufacturers - the European consortium Airbus Industrie and the US manufacturer Boeing. The airline has received and is evaluating the financial and technical bids for acquiring these aircraft.

AI has already identified Airbus A-330 and A-340 as also the Boeing B-777 and B-747 aircraft as being best suited to meet its requirements.

The airline last acquired aircraft in the early 1990s when the Boeing 747-400 aircraft joined its fleet and has been leasing aircraft thereafter to offer more connectivity. It recently inducted Boeing 777 aircraft that will be used for flights from India to the US and the UK.

Incidentally, the airline board has already approved a fleet acquisition plan up to the year 2012-13 that envisages the acquisition of 18 Boeing 737-800 aircraft for its soon-to-be-launched subsidiary, AI Express. For the main airline, plans are to acquire 50 aircraft.

A project report for the acquisition of 18 Boeing 737-800 aircraft at an estimated cost of Rs 4,951 crore has been sent to the Government, while the final cost of the acquisition of 50 aircraft is yet to be finalised.

Officials of Airbus and Boeing as well as political leaders from Europe and the US have taken up the issue of fleet acquisition not only by AI but also Indian Airlines at the highest official level during their visits to India.

Recently, the visiting US Transportation Secretary, Mr Norman Mineta, broached the issue in New Delhi, expressing the hope that the Indian Government would give a fair consideration to the Boeing offer. He also disclosed that the US President, Mr George W. Bush, had conveyed the same message to the Prime Minister, Dr Manmohan Singh, in the recent past.

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